Textile Raw Materials Price Rises Superimposed On Traditional Off-Season Textile Enterprises

Entering the market in June, the market is approaching the normal off-season, and the market confidence of spinning enterprises is low. Regardless of domestic demand or foreign trade, enterprises generally believe that the downstream market will enter the off-season, and the cotton textile industry will face the big test again. Small and medium-sized textile enterprises will again face a crisis of production and downtime. As of June 11th, the domestic C32S average price was 18722 yuan / ton, a slight increase of 7% compared with last week.

Since June, with the closing price of Zheng Mian 09 breaking 11800, 12000 yuan / ton, domestic lint regardless of base price or "one price" will also rise again and again three, a large pair of cotton back to the trend. This week cotton spot CC3128B index closed at 12083 yuan / ton, up 161 yuan / ton compared with last week, or 1.35%. Zheng cotton's rise makes some traders have the opportunity to take delivery and guarantee, and revitalize the cotton market. However, downstream textile enterprises did not keep up. As of June 5th, the cotton index of textile enterprises closed for 30 days, down 1.9 days from last week. This is because the textile enterprises simply can not accept the upstream raw materials rising due to the lack of orders. Some textile enterprises have not had "point price" or purchase price of raw materials at a single price for more than a week. Zheng cotton main force 12000 yuan / ton has become a "watershed" for textile enterprises to purchase enquiries or wait and see.

Textile enterprises, domestic orders gradually entered the off-season, a large part of textile and clothing enterprises 7/8 orders to join the national disaster, is likely to appear "eat up, not down" state. Many textile enterprises said that if 12000 yuan / ton of cotton is purchased at this time, spinning is bound to be a loss, and the inventory of cotton yarn is also nearly 3 years. Therefore, there is no purchase plan to digest the finished product inventory first. Spinning enterprises said that in the past 6 and July, the market was off season. As for exports, the European Union, one of the most important exporters, liked to put high temperature holidays in 7-9 months. France, Italy and Holland had to wait for at least a month or so. Therefore, the export orders for the 6 and July markets were relatively low, and 8 and September would increase again. The two or three months before Christmas reached the peak. To the peak, that is, "golden nine silver ten". Therefore, we are not very optimistic about the downstream market in the next 6 and July, and think that the market will not improve until August. And domestic demand, from the consumption habits and the downstream replenishment time, will be in the off-season in 7 and August, and the order is in a state of slack. Industry experts said that some of the small and medium-sized enterprises may face pressure to cut production, shut down, vacation or even shut down in the month of 6~9. The first reason is that the probability of a new outbreak of the second wave in autumn and winter is increasing. Two, the trend of Sino US economic and trade relations is becoming more and more subtle, the risk of trade friction is rising again, the export environment of textile and clothing is changing again, and the three is the pressure of domestic employment and income.

The price of imported yarn continued to stabilize this week. As of June 11th, the spot price of FCY Index C32S was 18547 yuan / ton, up 28 yuan / ton. In recent years, the RMB exchange rate has appreciated substantially against the US dollar. For imported yarns, foreign orders can be stimulated, and traders purchase to lower the cost of purchase. According to the current exchange rate price index, the cost of importing imported cotton yarn is the lowest since late May. Compared with spot prices, traders now have some profits in ordering India yarn and Vietnamese yarn. The spot price of Pakistan cargo is still upside down. On the whole, the advantage of imported yarn in 2020 is not as good as in previous years. From mid January to early March and early 4, domestic yarn has more advantages in absolute price. On the other hand, the order of the downstream cotton mill in China is still not improving. Under the strict control of domestic and foreign cotton mill production, the price of imported yarn and domestic yarn is hard to fall obviously.

Insiders estimate that if there is no accident at home and abroad, there will be an inevitable trend of economic recovery and development. With the support of a number of new policies to stimulate the economy, the textile industry will flourish and flourish. Of course, the production and operation of various industries after the epidemic will be subject to certain resistance in terms of quality and speed. There should be rational expectations for the market turnaround and can not be placed on too much "turning point" or "miracle". It is very important to do well in every business of hand and realize the perfect circulation of production and marketing.